Manila: The National Food Authority (NFA) has guaranteed sufficient funds for the procurement of palay (unhusked rice) from local farmers during the current harvest season. NFA Administrator Larry Lacson confirmed that only PHP2.6 billion of the allocated PHP14.6 billion has been spent on palay procurement so far this year.

According to Philippines News Agency, the procurement budget includes approximately PHP5.6 billion carried over from unspent 2024 funds. Lacson stated that the remaining funds would allow the purchase of 500,000 metric tons (MT) of palay, which is equivalent to 6.3 million bags of milled rice. The NFA is also enhancing its infrastructure, including warehouse and handling facility improvements, to accommodate its 15-day increased target for the national rice buffer stock.

Earlier, the NFA announced its plans to procure 880,000 metric tons (MT) of palay, equating to 555,000 MT of milled rice within the year. As of April 11, the NFA reported a total rice inventory of 7.17 million bags, which consists of 9 million bags of palay and 1.2 million sacks of milled rice. This inventory level marks the highest since the end of 2020, driven by a higher palay buying scheme ranging from PHP23 to PHP30 per kg for clean and dry palay, and PHP17 to PHP23 per kg for fresh and wet palay.

The average buying price for dry palay was PHP27 per kg last year, and it has decreased to PHP24 per kg this year, as indicated by the NFA.